Agency Information Collection Activities; Proposed Collection; Comment Request; New Markets Tax Credit Program (NMTC Program) Allocation Application, 13801-13802 [2024-03707]

Agencies

• Community Development Financial Institutions Fund
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 89, Number 37 (Friday, February 23, 2024)]
[Notices]
[Pages 13801-13802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03707]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Agency Information Collection Activities; Proposed Collection; 
Comment Request; New Markets Tax Credit Program (NMTC Program) 
Allocation Application

ACTION: Notice and request for public comment.

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SUMMARY: The U.S. Department of the Treasury, as part of its continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on proposed and/or continuing information collections, as required by 
the Paperwork Reduction Act of 1995 (PRA). Currently, the Community 
Development Financial Institutions Fund (CDFI Fund), U.S. Department of 
the Treasury, is soliciting comments concerning the New Markets Tax 
Credit Program (NMTC Program) Allocation Application, for the calendar 
year (CY) 2024-2026 funding rounds (hereafter, the Application or 
Applications). The CDFI Fund is required by law to make the Application 
publicly available for comment prior to submission for a new PRA 
number.

DATES: Written comments must be received on or before April 23, 2024 to 
be assured of consideration.

ADDRESSES: Direct all comments to Christopher Allison, NMTC Program 
Manager, CDFI Fund, at [email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be directed to Christopher Allison, NMTC Program Manager, CDFI 
Fund, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, 
Washington, DC 20220, or by email to [email protected] or contact by 
telephone at 202-653-0421.

SUPPLEMENTARY INFORMATION: 
    Title: NMTC Program Allocation Application.
    OMB Number: 1559-0016.
    Abstract: Title I, subtitle C, section 121 of the Community Renewal 
Tax Relief Act of 2000 (the Act) amended the Internal Revenue Code 
(IRC) by adding IRC Sec.  45D and created the NMTC Program. The 
Department of the Treasury, through the CDFI Fund, Internal Revenue 
Service, and Office of Tax Policy, administers the NMTC Program. In 
order to claim the NMTC, taxpayers make Qualified Equity Investments 
(QEIs) in Community

[[Page 13802]]

Development Entities (CDEs) and substantially all of the QEI proceeds 
must, in turn, be used by the CDE to provide investments in businesses 
and real estate developments in low-income communities and other 
purposes authorized under the statute.
    The tax credit provided to the investor totals 39 percent of the 
amount of the investment and is claimed over a seven-year period. In 
each of the first three years, the investor receives a credit equal to 
five percent of the total amount paid for the stock or capital interest 
at the time of purchase. For the final four years, the value of the 
credit is six percent annually. Investors may not redeem their 
investments in CDEs prior to the conclusion of the seven-year period 
without forfeiting any credit amounts they have received.
    The CDFI Fund is responsible for certifying organizations as CDEs 
and administering the competitive allocation of tax credit authority to 
CDEs, which it does through annual allocation rounds. As part of the 
award selection process, CDEs will be required to prepare and submit an 
Allocation Application, which consists of five sections: Business 
Strategy; Community Outcomes; Organization Capacity; Capitalization 
Strategy; and Previous Allocations and Awards.
    Current Actions: Extension with significant changes from currently 
approved collection.
    Type of Review: Regular.
    Affected Public: CDEs applying for NMTC Allocations.
    Estimated Number of Respondents: 201.
    Estimated Annual Time per Respondent: 307.
    Estimated Total Annual Burden Hours: 61,876 hours.
    Requests for Comments: Comments submitted in response to this 
notice will be summarized and/or included in the request for Office of 
Management and Budget approval. All comments will become a matter of 
public record and may be published at www.reginfo.gov. The CDFI Fund is 
seeking input on the NMTC Application. The Application may be obtained 
on the NMTC Program web page of the CDFI Fund's website at https://www.cdfifund.gov/requests-for-comments. Revisions to the NMTC 
Allocation Application will be highlighted in yellow.
    Comments concerning the Application are invited on: (a) whether the 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected; (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of technology; (e) estimates of 
capital or start-up costs and costs of operation, maintenance, and 
purchase of services required to provide information; and (f) whether 
any additional questions or factors should be considered as part of the 
NMTC Application and/or review process with regards to the Business 
Strategy section.

(Authority: 26 U.S.C. 45D; 26 CFR 1.45D-1)

Marcia Sigal,
Acting Director, Community Development Financial Institutions Fund.
[FR Doc. 2024-03707 Filed 2-22-24; 8:45 am]
BILLING CODE 4810-70-P